Key Insights
- President-elect Donald Trump has just launched a new memecoin collection in the market, amid speculation and critique.
- This memecoin has exploded in value over the last two days, adding billions to Donald Trump’s net worth.
- Skeptics have pointed out the supply concentration, where Trump-affiliated companies control a large amount of this memecoin.
- Only time will tell what comes next for this memecoin, after hitting billions of dollars in market cap.
The crypto industry never runs out of surprises.
However, the launch of the new $TRUMP memecoin by president-elect Donald Trump on Friday has redefined what “unexpected” means.
This new cryptocurrency was deployed on the Solana network and experienced a staggering 500% increase in price within the first 24 hours of launch.
However, beyond this rise in price and the opportunities it has presented for investors, this move has several implications for the crypto market.
Let’s go over the latest developments.
The TRUMP Token’s Record-Breaking Debut
The launch of the official $TRUMP memecoin came with a wave of announcements from Trump’s social media handles, including X and Truth Social.
Within hours of its launch, this token had hit a market cap of around $8 billion, and was already one of the top 30 cryptocurrencies.
This rapid jump in price was also fueled by nearly $12 billion in trading volumes within a single day.
The token’s deployment on the Solana network might have had much to do with its growth, because $SOL itself surged to a new all time high of $274 on Saturday.
Solana-based defi products also saw a noticeable increase in liquidity and TVL according to DefiLlama.
All of this happened at the expense of Ethereum, where many ERC-based memecoins dipped in comparison.
Ownership Concentration Sparks Skepticism
Despite this token’s success, critics have attacked its legitimacy all weekend.
For example, data from Arkham Intelligence shows that 80% of this new token’s supply is controlled by two Trump-affiliated entities: CIC Digital LLC and Fight Fight Fight LLC.
This concentration of ownership has been a source of concern about centralization, considering how concentrated supplies have historically been one of the ingredients of crypto rug pulls.
Critics have also pointed out inconsistencies in the token’s message.
For example, while the announcement tweets tout the cryptocurrency as a “celebration” of his presidential victory, the official website clearly states that $TRUMP is non-political, and “has no ties” to Donald Trump’s campaign.
Critics have also pointed out inconsistencies in the messaging around the token. While Trump’s social media accounts described $TRUMP as a celebration of his presidential victory, the token’s website explicitly states that it is a “non-political digital asset” with no ties to his campaign or government activities.
Is the TRUMP Token Legitimate?
The token’s legitimacy has also been questioned by industry experts so far.
In the first few hours of the token launch, there were initial concerns about the Trump social accounts being hacked.
Even after subsequent posts reaffirmed that the token was legitimate, several experts remained skeptical.
One example is JRNY Crypto, who noted the absence of official confirmation from Trump’s advisors.
Prominent trader Edward Morra also warned that high-profile memecoins could take over the market and lead to harsher volatility in case of a sell off.
Interestingly, $TRUMP isn’t Donald Trump’s first foray into the world of digital assets.
In recent years, the Trump brand has been linked to several other ventures, including three NFT trading card collections, which allegedly generated nearly $10 million in licensing fees.
Trump has also sold several other branded items including $100,000 luxury watches and branded sneakers.
This memecoin, however, is a new frontier and only time can tell what comes next.
